Central Banks Fuel Record-Breaking Gold Rally
Central banks around the world have resumed buying gold in large quantities, driving international gold prices to a new high of over $4,300 per ounce. This surge is largely due to easing US-Iran tensions and weak US employment data, which has dampened rate hike expectations.
The People's Bank of China has been steadily increasing its gold reserves for 21 consecutive months, with holdings reaching 76.08 million ounces in July. Meanwhile, the Bank of Korea has resumed physical gold buying after a 13-year hiatus and is establishing a stable domestic acquisition pipeline through partnerships with domestic producers.
A World Gold Council survey shows that 45% of surveyed central banks plan to increase their gold reserves within the next year, with global central bank purchases surging 62% year-over-year to 288.9 tonnes in the second quarter.
Market analysts believe that $4,200 could become a new medium-term price anchor, and gold prices are expected to trend higher amid volatility in the second half of the year.